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241 At a regular meeting of the Federal Reserve Board held in the office of the Board at 11.00 a. is. on Thursday, :arch 13, PRESENT: Mr. Delano, presiding, Mr. Warburg Mr. Williams Mr. Harding Mr. Willis, 3ecretary. The minutes of the meeting of 11.15 a. m. Wednesday, March 17th were read and approved. A letter From Federal Reserve Agent Jurtiss of Boston making innj,liry regarding his power to issue Federal reserve notes was ordered answered with the statement that when notes are shipped to a Federal reserve agent it is with the implied authority to issue them to the Federal reserve bank to which he is accredited, under the conditions snecified in the Federal Reserve Act and the general re-ulations of the Board. Applications for the surrender of carital stock were presented to the Board and approved, as follows: First National Bank First National Bank Roselle, N. J. Scenery Hill, Pa. 6 shares 1 share Mr. Delano, on behalf of the Committee having in charge the question of the establishment of a reserve stock 242 of Federal reserve notes, to be held insub-treasuries nearest the several Federal reserve banks, presented a report on this subject, which was read to the Board and ordered filed. After discussion, it was agreed that the report lie on the table for the time being, pending further inquiry on the .subject. A special committee baying in charge the applications of various banks for power to act as executor, trustee, etc., reported in favor of approving such powers for the following institutions: First rational Bank National Shawmut Bank Middletown rational Bank First Nati-mal Bank Union Thrket rational Bank Worcester rational Bank Manufacturers rational Bank Second :Tational Bank of National Bank of National "..xchange Bank United States National Bv.nk First National Bank Essex National Bank Merchants National Bank second rational Bank First National Bank Boston, Mass. Boston, Mass. Middletown, Conn. Wallingford, Conn. Watertown, Mass. Worcester, Mass. Waterbury, Conn. New Haven, Conn. Danville, Va.' Roanoke; Va. Denver, Job. Alexandria, Va. Haverhill, Mass. Boston, Mass. Boston, Mass. Birmingham, Ala. On motion the foregoing recommendations were approve (rote: The United 3tates . National Bank of Denver, Colorado, the rational Shawmut Bank of Boston, Mass. and been the First rational Bank of Boston, Mass, had already approved by the Board.) The special committee aforesaid, reported in favor of 243 withholding, for the ',resent at least, approval of the applications of the following banks: Jefferson National Bank Virginia National Bank District National Bank • Palmetto National Bank Keene National Bank First National Bank city National Bank Second National Bank Rockbridge National Bank Citizens National Bank • Charlottesville, Va. Petersburg, Va. Washington, D. C. Columbia, 3. 0. Keene, N. H. 'Concord, N.. H. _Nnoxville, Tenn. Washington, D. C. Lexington, Va. Covington, Va. On motion the recommendation was approved. The Committee further reported that the First National Bank of Minotola, N. J. showed it to be in good condition, but recommended the withholding of approval for the present, in view of the fact that the bank has a capital of but .ii25,000, Pending the determination of a general policy on the part of the Board regarding such applications. A letter from Secretary J. F. Curtis of the Federal Reserve Bank of New York relative to the position .;f the Bank of New York with regard to the securing of legislation favorable to the exercise of executor and trustee powers, the same being in answer to the Board's recent resolution, was read to the Board. Lir. Williams moved that it is the sense of the Federal Reserve Board that, inasmuch as the laws of a number of the states rake it possible for member banks to act as executor, trustee, etc., and inasmuch as there are a number of states in which existing 244 laws render nul-7atory the provisions of the Federal Reserve Act permitting the extension of such powers to member Ultional banks, this Board would be pleased to see such restrictions now existing in the laws of the several states, rer)ved. After discussion, 1,:r. Williams' motion was adopted, subject to revision by counsel of the Board with reference to the facts as stated. The question of accentances in trade between two further foreign countries was ordered to lie on the table until order. / The Jecretary of the Board called the attention of the 'members present to the statement of earnings and expenses compiled of the several 2ederal reserve banks, which had been by the Division of Re/Ports and 3tatistics. Hr. Delano, on behalf of the special co:_r_ittee previously appointed by the Board for the purpose of drafting a respectletter to the Attorney General of the United 3tates, ing the definition of public moneys, made a brief statement was of the existing situation in this matter. • On motion, it the voted that the committee secure a personal interview with Warren, ttorney General, also with Assistant Attorney General at as early as possible, for the purpose of bringing to their tention the Board's views with reference to the matter in liana' 245 The question of permitting subscription blanks to be circulated among employees of the Board for any purpose was brought up, aprouos of the Proposed circulation of such a blank solicitin:3 contributions to a baseball fund. . On motion it was voted that the Board enter a general disapproval of the circulation of any such blanks for any purpose, now or in the future. A letter from Federal Reserve Agent Perrin relative to settlements between 1.-'ederal reserve banks was referred to Warburg. Letters from Federal Reserve Agents Wills and Ingle relative to certain ioroblems in connection with the functions of trustee, executor, etc. were referred to Harding, with rec:uest that he write them fully, for their private information, as to the attitude of the Board. The application of the Federal reserve Bank of lanneapolis for an issue of Federal reserve notes, duly recommended, was approved as follows: Five dollar notes Ten dollar notes Twenty dollar notes .680,000 80,000 240,000 In answer to an inquiry from Federal Reserve Agent Perrin as to the question of rediscounts of long term parer between Federal reserve banks, the 3ecretary was directed to say that for the present there is no prosnect of the offering of such rediscoants, and that consequently the Board has not deemed it necessary to pass upon the matter. An application from the Harriman Bank of Alaska for an issue of stock in the Federal Reserve Bank of the twelfth district having been presented to the Board, the 3ecretary was authorized to approve the application in advance of action by the Federal Reserve Bank of Jan Francisco, writing at the same time to Federal Reserve Agent Perrin in order to explain to him that this action was taken merely for the purpose of economizing time in the transmissdon of the application. On motion it was voted that the sense of the member Board is that Ur. Harding and if possible, one other of the Board, should make a visit of inspection to the Federal Reserve Bank of Atlanta during the latter part of the coming week. :;arburg stated that it might be opl,ortune for the Board to record that, the aggregate of dis- counts acquired by the Federal Reserve banks up to 1:arch 18 amounts to about ,„:7,000,000 the total whi3h the Federal ROserve Banks have been able to acquire with the endorsement 247 of a member bank amounts to only :427,000 noting that this clearly bears out the policy of the Board adopted in framing its acceptance regulations. Application from Federal Reserve Agent Wills for s7ecial T)ermission to purchase 50,, 4 of an issue of .:1150,000 of short time notes or warrants of Fayette County, Pa., was, on motion, approved, it being stated however, to r. Wills that the action taken is not to be regarded as constituting a precedent. On motion, at 1.00 p. m. the Board adjourned to meet at 11.00 a. m. Friday, Larch 19, unless otherwise ordered in the meantime. APPROVED:
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